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Draft Annual Report for the Toronto Transit Commission for 2017

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Draft Annual Report for the Toronto Transit Commission for 2017 For Action Draft Annual Report for the Toronto Transit Commission for 2017 Date: May 29, 2018 To: TTC Audit & Risk Management Committee From: Chief Financial Officer Summary Each year, the TTC prepares an Annual Report which provides a summary of key accomplishments for the year and the consolidated financial statements of the TTC and its subsidiaries. This report presents the non-financial statement information to be contained within the 2017 Annual Report. Note that the 2017 financial statements are being submitted to the Audit & Risk Management Committee for approval at this meeting through a separate report. Recommendations It is recommended that the TTC Audit and Risk Management Committee: 1. Approve the report. Implementation Points This report must be approved at the May 29, 2018 TTC Audit & Risk Management Committee Meeting to ensure timely publication and distribution of the 2017 Annual Report. Financial Summary There are no financial implications resulting from the adoption of this report. Equity/Accessibility Matters Once approved, TTC will post an AODA-compliant version of the 2017 Annual Report on the TTC website. Draft Annual Report for the TTC for 2017 Page 1 of 3 Decision History TTC’s Corporate Policy 6.2.0 Financial Reporting to the Board, paragraph 4.1 states that annual audited financial statements must be included in the TTC’s Annual Report. Furthermore, at its meeting on February 9, 2017, the TTC Audit & Risk Management Committee approved that the terms of reference of the Audit & Risk Management Committee, which includes a requirement to “review other sections of the annual report before release and consider the accuracy and completeness of the information” as set out in item 2 at: https://www.ttc.ca/About_the_TTC/Commission_reports_and_information/Committee_m eetings/Audit_Risk_Management/2017/February_9/Reports/2_TTC_Audit_%20and_Ris k_Management_Committee_Terms_Of_Referenc.pdf Issue Background The report presents the non-financial statement information to be contained within the 2017 Annual Report. Comments The attached 2017 Annual Report contains the following: 1. Chair’s Letter 2. CEO’s Statement 3. 10-Year Non-consolidated Financial and Operating Statistics 4. 2017 Corporate Communications Content 5. Management Directory – 2017 The 2017 Annual Report will be issued following approval of the consolidated financial statements at the June 12, 2018 TTC Board meeting. Contact Stephen Conforti, Head of Finance & Treasurer (416) 393-3654 [email protected] Signature Dan Wright Chief Financial Officer Draft Annual Report for the TTC for 2017 Page 2 of 3 Attachments Attachment 1 - 2017 TTC Draft Annual Report Draft Annual Report for the TTC for 2017 Page 3 of 3 2017 Annual Report Toronto Transit Commission Contents Chair’s Letter 3 The TTC Board 7 CEO’s Statement 9 Executive Team 13 Line 1 Extension opens to the public 15 Corporate Plan Achievements 2017 18 Consolidated Financial Statements of TTC 21 Year ended December 31, 2017 Notes to the Consolidated Financial Statements 29 for the Year ended December 31, 2017 Consolidated Financial Statements – 64 As at and for the Year ended December 31, 2017 Conventional System – 10 Year Non-Consolidated 66 Financial and Operating Statistics (Unaudited) Management Directory – December 31, 2017 69 TTC’s Line 1 Extension to York Region opened to the public on December 17, 2017. 2 | Toronto Transit Commission – Annual Report 2017 Chair’s Letter To: Mayor John Tory and Councillors of the City of Toronto As Chair of North America’s Transit System of the Year, it is my privilege to submit the 2017 Annual Report for the Toronto Transit Commission. It was a great honour for the TTC, Commissioners and all staff to accept the American Public Transportation Association’s award for Outstanding Public Transit System for 2017. The entire organization was proud to be recognized by our industry peers who selected the TTC for the monumental work that was achieved over the past five years to modernize the network on all fronts: Safety; Customer; People; Assets; Reputation; Financial Sustainability; and Growth. We improved all aspects of TTC service to achieve our vision of a transit system that makes Toronto proud. A year of significant accomplishments was capped off on December 15, Subway riders were 2017 as the TTC stood with our federal, provincial and municipal funding partners to celebrate the much-anticipated and long-awaited served by nine official opening of the Line 1 subway extension into Vaughan, in York more accessible Region. The 8.6-kilometre extension from Sheppard West to Vaughan stations – St Clair, Metropolitan Centre opened to the public two days later. It was truly a milestone for rapid transit in Toronto and neighbouring Woodbine, Coxwell York Region. The Toronto-York Spadina Subway Extension is the first and the six on the subway to cross the Toronto municipal boundary. It is also the first new extension. subway expansion to open in 15 years. Along with our funding partners, we are determined to see more major transit projects get built sooner in our great city. In 2017, we saw continued improvements in the planning and scheduling of TTC services. More than 250 schedule adjustments were made to the network last year. Many of these adjustments were aimed at improving overall performance and resulted in less overcrowding and more reliable service for customers. Subway riders were served by nine more accessible stations – St Clair, Woodbine, Coxwell and the six on the new extension. Our streetcar network saw nearly 60 new accessible cars in service and the bus network was reinvigorated by hundreds of new clean diesel buses. Over the next few years, we’re set to receive more than a thousand low-emission and zero-emission buses as the TTC accelerates its green bus procurement program. | 3 This is what the new TTC looks like: modern, accessible and connected. These improvements are all part of creating a better, more reliable public transit service for Toronto, which already carries well over half a billion people each year. I would like to thank Mayor Tory and Toronto City Council for their continued support for the TTC and public transit in Toronto. I would also like to thank my fellow Commissioners who served with me in 2017: Vice-Chair Alan Heisey Q.C., John Campbell (Ward 4 Etobicoke Centre), Mary Fragedakis (Ward 29 Toronto-Danforth), Vincent Crisanti (Ward 1 Etobicoke North), Deputy Mayor-East Glenn De Baeremaeker (Ward 38 Scarborough Centre), Joe Mihevc (Ward 21 St. Paul’s), Deputy Mayor-North Denzil Minnan-Wong (Ward 34 Don Valley East), and Rick Byers, Ron Lalonde and Joanne De Laurentiis. Lastly, thank you to the thousands of women and men at the TTC who work every day to keep our city moving. Sincerely, Josh Colle TTC Chair April 2017 4 | Toronto Transit Commission – Annual Report 2017 The Line 1 Extension has six accessible stations and is 8.6 kilometres in length. | 5 From Sheppard West (formerly Downsview) Station, the Line 1 Extension runs northwest through York University and north into York Region. 6 | Toronto Transit Commission – Annual Report 2017 The TTC Board As at December 2017 Josh Colle Alan Heisey Q.C. Chair Vice-Chair Commissioners Joanne De Rick Byers John Campbell Mary Fragedakis Vincent Crisanti Laurentiis Glenn Ron Lalonde Joe Mihevc Denzil De Baeremaeker Minnan-Wong | 7 The Line 1 Extension is the first subway expansion crossing the municipal boundary of Toronto. 8 | Toronto Transit Commission – Annual Report 2017 CEO’s Statement To: TTC Chair and Commissioners, Mayor John Tory and Councillors of the City of Toronto In 2017 we saw truly a transformative year for the TTC. We can all look back with pride at the results of our hard work and the unparalleled transit service that we delivered to the people of Toronto and beyond. I give tremendous credit to our dedicated and hard-working employees who build, maintain and operate a world-class and award-winning public transit network. Our first goal is to always provide great service to our customers – and that is what we achieved. As a result we can call ourselves North America’s Outstanding Public Transit System for 2017. We have accomplished a great deal to keep Toronto moving forward. From reversing service cuts and increasing service to making incredible strides on accessibility across the system, I’m proud of the efforts that we have made over the last five years. And our peers at the American Public Transportation Association have 2017 will be acknowledged it with Transit System of the Year honours. remembered for 2017 will be remembered for the grand opening of the Line 1 subway the grand opening extension to Vaughan. It was an awesome event that saw the launch of the newest stretch of track to our subway network since Line 4 of the Line 1 Sheppard opened in 2002. And for the first time the TTC subway subway extension reached across to serve our riders beyond Toronto’s border. to Vaughan. The extension is an incredible, state-of-the-art subway. Six beautiful and accessible stations feature a modern fare collection system, an abundance of unique public art, bike facilities and commuter parking. The line enables numerous new transit connections to help move commuters more seamlessly across the Greater Toronto Area with links to GO rail service, TTC, York Region Transit, Viva and Brampton bus services, and future connections to the Highway 407 Transitway and Finch West LRT. Even more impressive, the extension features state-of-the-art, communications-based train control, also known as Automatic Train Control, the modern signalling system that will enable the TTC to run trains closer together safely when it is fully fitted throughout Line 1 in the near future. | 9 It was a personal thrill to witness on the first day of service the first northbound and southbound trains deliver our funding partners to Pioneer Village Station for a celebratory Toronto-York greeting.
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